Huons' Q3 operating profit up 14% on export rebound, CMO growth

Huons Co. said Monday it reported steady third-quarter growth, driven by the recovery of injectable exports to the U.S. and expanding contract manufacturing (CMO) business for eye drops.

The company said that consolidated sales rose 4.7 percent year-on-year to 153.7 billion won ($105.8 million) in the third quarter, with operating profit climbing 13.7 percent to 9.9 billion won and net profit up 13.3 percent to 8.2 billion won.

By segment, ethical drug (ETC) sales reached 70 billion won, up 5.1 percent from a year earlier, supported by a 44 percent jump in anesthetic sales. Export sales of injectables surged 51 percent on the back of revived U.S. demand.

CMO sales also grew 28 percent to 19.9 billion won, boosted by stronger production of eye drops and injectables at Plant 2.

In contrast, beauty and wellness revenue fell 27.6 percent to 35.3 billion won, mainly due to the transfer of the health functional foods business to subsidiary Huons N in May. Excluding that effect, the segment was flat from a year earlier.

Subsidiaries continued to perform well. Huons N posted 19.4 billion won in sales, up 40.8 percent, while Huons Life Sciences turned profitable after losses last year.

Huons also obtained GMP certification for its new injectable production line at Plant 2, which is expected to begin operations this year to further drive sales and profitability.

The board approved Huons’ first quarterly dividend of 570 won per share, as of Nov. 25. Huons CEO Song Soo-young said the company will “maximize capacity at Plant 2 and strengthen long-term growth momentum through new R&D pipelines and business expansion.”